Hi, can anyone tell me what is better to pick rsi divergence with because i notice they give different signals.. rsi on close or rsi on the rsi OHL/3 price?
Hi, can anyone tell me what is better to pick rsi divergence with because i notice they give different signals.. rsi on close or rsi on the rsi OHL/3 price?
jj,
Each method will give different results at different times. As a general rule if using indicators I would always start with the widely excepted method and settings giving you the same "view" on the indicator as the crowd. As you become familar with the behaviour of your indicator you can try changing it to be more/less whippy.
using OHL/3 (typical price) will give you different results as you are essentially taking the midprice and weighting it towards the close, while using the close in your calculations you will be susceptible to a rally on the close of a bar.
In short, there is no perfect setting and knowing how something is constructed and understanding its behaviour and sticking with it will IMHO serve you better in the long run.
...just an opinion others will no doubt disagree.
Sven
ps:broken spellchecker sorry
